Think tank warns fossil fuel ownership makes passive funds 'holders of last resort'

40% of all fund ownership in the sector

Passive funds now represent more than 40% of all fund ownership in the fossil fuel sector, sparking concerns that they are becoming “holders of last resort”, according to a think tank.

Research by Common Wealth found that passive funds are increasing their exposure to fossil fuel firms "even as the actively-managed sector has begun to retreat". The report, The Passive Revolution, authored by Chris Hayes and senior research fellow Adrienne Buller, identifies a "small cohort of increasingly vast asset management giants", namely BlackRock, Vanguard and State Street, that has "ridden a wave of enthusiasm for passive investing to positions of dominance" within the UK shareholder structure. It concludes that passive funds' growth in the fossil fuel industry, to the point ...